Domestic price The term 'Domestic price ' as it applies to the area of agriculture can be defined as ' The price at which a commodity trades within a country, in contrast to the world price. For those commodities not benefitting from some form of price support, the domestic price is determined by supply and demand. For commodities that receive price support, the domestic price is usually set by the loan rate or some comparable support level that serves as a price floor in the marketplace working in conjunction with any import quota that may be in effect'.

About the author

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".